Question

A car dealership pays a wholesome price of $12,000 to purchase a vehicle. The car dealership wants to make a 32% profit. The cars dealership pays the salesperson a bonus for selling the car equal to 6.5% of the sales price. How much commission did the salesperson lose when they decided to offer a 10% discount?

Answer 1

Answer:

$102.96

Step-by-step explanation:

Lets take this one part at a time.

the dealership pays 12000 for the car, so they start at -12000 for how much money they have.

The dealership wants to make a 32% profit.  This means they want to make back the 12000 plus 32% of that.  what is 32% of 12000?  just multiply 12000 bty .32  In the end it works out that the price they sell it for is 15840

I do want to mention that there is a chance the 32% might also be accounting the bonus.  So in other words the dealership spent 12000 for the car then however much in paying the bonus, and they want to make a 32% profit on both of these combined.  I do not think that is what it is asking for, but I wanted to mention it.

Anyway, with a sales price of $15,840 it says the bonus is 6.5% of that.  to find that just do the multiplication .065 * 15840 = 1029.60.  So this is the bonus normally.

Now the question says the salesperson offers a 10 percent discount.  This changes the sales price (by 10%) and the bonus they earn.  let's calculate both.

First 10% discount of the sales price is .9*15840 = 14,256

Then 6.5% of that is .065*14256 = 926.64 So this is the new bonus.

The question wants the difference of the two bonuses, and difference is subtraction.  so 1029.60 - 926.64 = 102.96 So if the salesperson offers a 10% discount they lose $102.96